Interim report
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NICKEL INDUSTRIES LIMITED ABN 44 127 510 589 Level 2, 66 Hunter Street Sydney NSW 2000 Australia T +61 2 9300 3311 E info@nickelindustries.com W www.nickelindustries.com 26 August 2026 ASX Limited 20 Bridge Street Sydney NSW 2000 (44 pages) HALF YEAR FINANCIAL REPORT Highlights: 6 Months to 6 Months to 30 June 2026 30 June 2025 US$m US$m • Nickel Industries Group Results: o Sales revenue: 938.4 829.7 o Gross profit: 164.3 114.8 o Operating profit: 164.3 98.7 o Profit after tax: 74.3 25.5 o Adjusted EBITDA: 247.6 169.9 30 June 2026 31 December 2025 US$m US$m • Nickel Industries Group Balance Sheet: o Total assets: 4,073.8 4,264.4 o Net assets: 2,528.5 2,458.5 • 62,019 tonnes of finished nickel metal produced in NPI and MHP • 8.1 million tonnes of saprolite and limonite ore mined at the Hengjaya Mine • Hengjaya Mine 2026 RKAB increased from 9.0 to 14.3 million wmt • Refinancing of bank loans • ENC producing first MHP and now nickel cathode • Monetisation of Sampala project via interest in CNE HPAL project Yours sincerely Richard Edwards Company Secretary
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Appendix 4D Half Year Report Name of entity NICKEL INDUSTRIES LIMITED ABN or equivalent company reference Financial half year ended (‘current period’) 44 127 510 589 30 JUNE 2026 Results for announcement to the market Revenues from ordinary activities up 13.1% to US$938.4 million Profit from ordinary activities after tax attributable to members up 365.8% to US$52.5 million Net profit for the period attributable to members up 365.8% to US$52.5 million Dividends (distributions) Amount per security Franked amount per security Final dividend Interim dividend N/A Nil¢ N/A Nil¢ Previous corresponding period Final dividend Interim dividend N/A Nil¢ N/A Nil¢ Record date for determining entitlements to the dividend. N/A Brief explanation of any of the figures reported above and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: Refer attached reports. NTA backing Current period Previous corresponding period Net tangible asset backing per ordinary security US$0.565 US$0.567 Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors’ Report and the consolidated financial statements for the half-year ended 30 June 2026. This report is based on the consolidated financial statements for the half -year ended 30 June 2026 which have been reviewed by KPMG.
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NICKEL INDUSTRIES LIMITED and its controlled entities A.B.N. 44 127 510 589 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2026
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2 Table of Contents Directors' Report 3 Lead Auditor's Independence Declaration 13 Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income 14 Condensed Consolidated Interim Statement of Financial Position 15 Condensed Consolidated Interim Statement of Changes in Equity 16 Condensed Consolidated Interim Statement of Cash Flows 17 Notes to the Consolidated Interim Financial Statements 18 Directors' Declaration 39 Independent Auditor's Review Report 40 Corporate Directory 42
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 3 The Directors of Nickel Industries Limited (Nickel Industries or the Company) and its subsidiaries (the Group) submit their financial report for the half year ended 30 June 2026 and the Auditor’s Review Report thereon. All amounts are reported in US$ unless otherwise stated. DIRECTORS The names of the Directors of the Company in office during the half year period and until the date of this report were: Norman Seckold – Chairman and Executive Director since 12 September 2007 Justin Werner – Managing Director since 23 August 2012 Christopher Shepherd – Executive Director since 23 December 2022 James Crombie – Non-Executive Director since 23 May 2008 Emma Hall – Non-Executive Director since 11 June 2024 William Shangjaya – Non-Executive Director since 9 May 2023 Muliady Sutio – Non-Executive Director since 21 September 2023 Haijun Wang – Non-Executive Director since 1 November 2023 Yuanyuan Xu – Non-Executive Director since 26 April 2018 RESULTS The profit of the Group for the half year after providing for income tax amounted to $74,344,926 (2025 - $25,503,730). REVIEW OF OPERATIONS During and following the half year ended 30 June 2026, significant milestones were achieved as follows: Highlights: • The Company’s processing operations produced a combined 62,019 tonnes of nickel metal. 58,128 tonnes of this were nickel in nickel pig iron (NPI) and 3,891 tonnes of attributable nickel in mixed hydroxide precipitate (MHP). Adjusted EBITDA1 for the half year period was $146.7 million for the rotary -kiln electric furnace ( RKEF) operations and the Company’s combined attributable Adjusted EBITDA from high-pressure acid leach (HPAL) operations (its 10% interest in the Huayue Nickel Cobalt (HNC) HPAL and NIC’s trading division) was $35.2 million. • 8,091,001 wet metric tonnes ( wmt) of nickel ore were mined at the Hengjaya Mine ( 3,049,036 wmt of saprolite ore and 5,041,965 wmt of limonite ore) and 5,925,895 wmt of nickel ore were sold ( 3,124,756 wmt of saprolite ore and 2,801,139 wmt of limonite ore). Adjusted EBITDA from the Hengjaya Mine for the period was $73.4 million. • In March 2026 the Hengjaya Mine received its RKAB approval for 2026 nickel ore sales, which has been increased from 9.0 million wmt to 14.3 million wmt for the year ended 31 December 2026. • In April 2026 the Company completed its final equity acquisition in the Excelsior Nickel Cobalt (ENC) project, acquiring a further 2% for $46 million. This increased the Company’s interest in the ENC project to 46%. • In April 2026 the Company executed $450 million syndicated loan facilities, refinancing its existing $398 million of bank loans. 1 Adjusted EBITDA is defined as profit/(loss) before tax for the period plus the following adjustments: depreciation and amortisation costs, impairment, foreign exchange gains/(losses), Net Finance Cost, withholding tax expense and the proportionate share of these adjustments in equity accounted associates (EAA). This non -IFRS financial measure, referred to throughout the directors’ report, is used internally by management to assess the performance of the Group’s business and make decisions on allocation of resources.
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 4 • In June 2026 the Company agreed to invest $169 million for a 17.5% interest in the Teluk Metal Industry ( TMI) HPAL project, with the acquisition payment due in November 2026. • In June 2026 the Company entered into a binding Framework Agreement to acquire an indirect 36% interest in the Chengsheng New Energy (CNE) HPAL project, in return for a 18% interest in two of the Sampala Project IUPs. Safety The Company-wide 12-month lost time injury frequency rate (LTIFR) as at the end of June 2026 was NIL, with no lost time injuries (LTI) recorded during the half year period, against 9.6 million work hours registered. For the twelve months to 30 June 202 6, there were 18.0 million work hours registered, with no LTIs occurring. The Company-wide 12-month rolling total recordable injury frequency rate (TRIFR) as at the end of June 2026 was 0.45. Sustainability Fourth Green PROPER rating The Company’s Hengjaya Mine was awarded a fourth consecutive Green PROPER Award from the Ministry of Environment and Forestry, which indicates beyond compliance practices in terms of ESG implementation and reporting. The Hengjaya Mine remained one of only three nickel companies in Indonesia to achieve this distinction and the highest -rated nickel producer under the Ministry's 2025 environmental assessment. Performance and Awards Nickel Industries' commitment to creating positive social impact also received widespread recognition during the period. The Company and Hengjaya Mine were honoured at the TOP CSR Awards 2026 for excellence in community development and responsible business practices, recognising initiatives that deliver measurable benefits for local communities. The Company also continued its university scholarship program for students in neighbouring towns in Sulawesi, a key community development initiative. In addition, the Company received multiple accolades at the HR Asia Awards 2026 and Employee Experience Awards 2026, highlighting its commitment to fostering an inclusive, engaging and high -performing workplace. Together, these achievements reflect Nickel Industries' continued commitment to leading responsibly while creating sustainable value for its people, communities, environ ment and stakeholders. Sustainability Report The Company published its 2025 Sustainability Report, incorporating its first AASB S2 Climate -related Disclosure with independent external assurance, further strengthening transparency and accountability. Environmental leadership was reinforced through the official inauguration of the 197 -hectare Biodiversity Conservation Area within the Hengjaya Mine concession, providing a long -term centre for biodiversity conservation, environmental education, research and community engagement. Subsequent to the end of t he half year period, the Company entered into a Joint Study Agreement to explore for natural hydrogen in Sulawesi, a potentially low -cost, clean energy source that can enhance energy security and support the transition to a lower-carbon future. Hengjaya Mine seedling watering
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 5 RKEF OPERATIONS (80% indirect interest held by Nickel Industries) During the half year, the Company’s RKEF operations delivered production of 519,840 tonnes of NPI with 58,128 tonnes of nickel metal. Production levels were impacted by planned maintenance, including kiln lining maintenance at ANI. Adjusted EBITDA from RKEF operations was $ 146.7 million for the half year period ended 30 June 202 6 (30 June 202 5: $78.3 million). The increase in Adjusted EBITDA was driven by a 21% increase in the weighted average sales contract price. Production Units 2025 2026 NPI production tonnes 522,601 519,840 Nickel grade % 11.9 11.2 Total nickel production tonnes 62,257 58,128 Cash costs $/t Ni 10,117 11,480 Sales Units 2025 2026 Wtd. Avg contract price $/t Ni 11,350 13,784 Sales tonnes 62,641 58,154 Revenue $m 708.8 804.5 Adjusted EBITDA $m 78.3 146.7 Adjusted EBITDA/t $/t Ni 1,251 2,523 RKEF production
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 6 HPAL OPERATIONS HNC & ENC (10% and 46% indirect interests held by Nickel Industries); TMI & CNE (17.5% and 36% to be acquired) During the half year, HNC sold 38,557 tonnes of nickel in MHP. Attributable HNC Adjusted EBITDA (10%) was $28.3 million, with a further $6.7 million of Adjusted EBITDA generated by the Company's trading division on MHP sales to end customers, taking total Adjusted EBITDA to $35.2 million. Adjusted EBITDA of $ 9,113/t Ni (including the trading division) was 52% higher than the half year ended 30 June 2025, driven by a higher MHP sales price . Additionally, HNC repaid the project finance facility and made its maiden distribution to Nickel Industries of $3.5m in the form of a shareholder loan interest payment. During the period, ENC commenced integrated commissioning at the feed preparation plant, along with the smelter and refinery, with the first MHP produced in July and the first nickel cathodes produced in mid-August. Washed ore from Hengjaya Mine was transferred from the mine to the smelter by pipeline in June as planned. The integrated sulphuric acid plant supplied the first acid and steam in early July, after which the first of three autoclaves began feeding Hengjaya ore at the smelter. The concentration circuits are all working as expected, with first crystallised MHP ma de from Hengjaya Mine's own ore filtered in July. Feed commenced late in the half year period at the sulphate and cathode refinery. Commissioning of end -to-end nickel cathode production is now well underway, with solution having travelled through most of the solvent extraction circuits. The first production of nickel cathode production took place in early August 2026. Following first cathode production, the registration process for ENC's nickel cathodes on the London Metal Exchange ( LME) and Shanghai Futures Exchange (SHFE) can commence, ultimately maximising product liquidity and production flexibility. On 24 June 2026, the Company entered into binding agreements for two HPAL investments, each to be developed at the ENC HPAL complex, with construction underway as can be seen in the photo below: a 36% interest in the CNE HPAL project (nameplate capacity of approximately 28,357 tonnes of nickel in MHP per annum) via a share swap of an 18% interest in the Sampala Project with no cash consideration payable; and a 17.5% interest in the TMI HPAL project (nameplate capacity of approximately 38,640 tonnes of nicke l in MHP per annum) for $169 million alongside a consortium of major Korean and Japanese industrial groups, with a construction guarantee capping the total acquisition cost (ASX Announcement - 24 June 2026). The Sampala Project has been designated as the exclusive ore supplier to both projects, with HPAL commissioning expected to commence in mid-2027 (ASX Announcement - 24 June 2026). ENC HPAL Smelter
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 7 MINING OPERATIONS Hengjaya Mine (80% interest held by Nickel Industries) During the half year, production at the Hengjaya Mine fell 30% compared to the comparative period, with mining operations impacted by a suspension for 14 days. However, sales of nickel ore increased slightly and are expected to materially increase in the second half of the year, with operations being ramped up as a result of the mine having secured an RKAB licence for 2026 of 14.3 million wmt in late March 2026, an increase of approximately 40% from 2025. The average realised sale price increased 27.7% to $31.3/wmt compared to the prior half year period, driven primarily by the Indonesian Government’s changes to the nickel ore Benchmark Price (HPM) that took effect in April 2026, with saprolite sale prices increasing 55.4% to $40.4/wmt. As Indonesian government royalties on ore sales are levied by reference to the HPM, the benefit of these higher sale prices was partially offset by higher royalty payments, the primary driver of the 4 9.6% increase in unit operating costs to $18.7/wmt. Adjusted EBITDA increased 4.4% to $73.4 million for a record half year result and Adjusted EBITDA/wmt increased 5% to $12.4/wmt. Production Units 2025 2026 Saprolite production wmt 2,334,738 3,049,036 Limonite production wmt 9,237,715 5,041,965 Total production wmt 11,572,453 8,091,001 Overburden BCM 1,304,621 1,657,034 Strip ratio BCM/wmt 0.11 0.20 Sales Units 2025 2026 Saprolite sales wmt 2,751,591 3,124,756 Limonite sales wmt 3,111,053 2,801,139 Total sales wmt 5,862,644 5,925,895 Saprolite grade % 1.44 1.48 Limonite grade % 1.13 1.12 Saprolite sale price $/wmt 26.0 40.4 Limonite sale price $/wmt 23.1 21.2 Average sale price $/wmt 24.5 31.3 Unit operating costs $/wmt 12.5 18.7 Adjusted EBITDA $m 70.3 73.4 Adjusted EBITDA/wmt $/wmt 12.0 12.4 EBITDA margin % 49% 40% Hengjaya Mine revegetation
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 8 Sampala Project (Nickel Industries has a right to acquire a 60% interest; 42% post-CNE swap) On 25 May 2026, the Company announced an updated JORC Resource for the Sampala Project of 1,095 million wmt at 1.24% Ni and 0.09% Co, containing 8 million tonnes of nickel metal . An advance payment of $28.5 million was made and the final acquisition payment of $144 million for a 60% interest in the PT Abadi Nikel Nusantara (ANN) mining concession is due in April 2027 ( ASX Announcement - 25 May 2026). The Company confirms that it is not aware of any new information or data that materially affects the information included in that announcement, and that all material assumptions and technical parameters underpinning the Minera l Resource estimate in that announcement continue to apply and have not materially changed. The acquisition of the Samp ala Project remains subject to certain conditions precedent, including Government approval. In June 2026, the Company entered into a binding Framework Agreement pursuant to which it will exchange an 18% interest in the Sampala Project's ANN and PT Erabaru Timur Lestari ( ETL) IUPs for an indirect 36% interest in the PT Chengsheng New Energy (CNE) HPAL project (nameplate capacity of approximately 28,357 tonnes of nickel in MHP per annum), with no cash consideration payable. The share swap represents a valuation for the Sampala Project in excess of $1.3 billion, with the Sampala Project de signated as the exclusive ore supplier to CNE and TMI via slurry pipeline (ASX Announcement - 24 June 2026). The Sampala Project continued to advance during the half year period. The Feasibility Study for the ANN and ETL IUPs are currently being evaluated by the Indonesian Government. Key environmental, forestry and mining approvals continued to progress through the relevant authorities, supporting the next phase of the Sampala Project’s development. Construction of three bridges under the community development program continued during the quarter, reaching 63% completion. While primarily intended to improve community access, the bridges will also support logistics and the mobilisation of heavy equipment for the Sampala Project. During the half year period, drilling crews completed 826 drill holes for a total of 28,942 metres. Drilling focused on achieving 50 - metre spacing across the ANN area to support detailed mine planning. In parallel, geotechnical drilling continued in support of engineering design and permitting requirements. Sampala Mine construction activities Siduarsi Project (51% interest held by Nickel Industries, with rights to move to 100%) The Feasibility Study has been submitted to the Indonesian Government and is currently under review. The Siduarsi team completed repairs of 8 km of the haul road and construction of the bridge, securing year-round access for personnel, heavy equipment and logistics ahead of future exploration and potential development activities.
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 9 CORPORATE Bank loan refinancing In April 2026 the Company executed $450 million syndicated loan facilities to repay the Company’s existing $398 million of bank loans. The refinancing provides the Company with a lower cost of capital and an increased maximum leverage covenant, maintaining flexibility to operate in a cyclical industry. ENC strategic partnership In December 2025, Sphere Corp. (Sphere) invested into the ENC Project as a strategic partner. Sphere acquired a 10% interest in the Project from the Company at a $2.4 billion valuation, which concurrently acquired a 10% interest based on the same $2.4 billi on valuation, leaving the Company’s interest un changed at 44%. Sphere will offtake its 10% share of nickel as cathode and has entered into an offtake agreement, at market price, for further volumes above its 10% ownership share. At 31 December 2025, the Compa ny had recorded a receivable from Sphere in relation to its 10% interest in ENC, amounting to $239 million. In January 2026 Sphere settled this amount fully. Concurrently, the Company settled a payable to Shanghai Decent for $240 million. To complete its investment in ENC, in January 2026 Sphere entered into a $210 million senior secured amortising term loan from external lenders. To facilitate this financing, the Company agreed to provide a credit enhancement to Sphere’s lenders by granting them recourse to the Company in the event Sphere defaults. Depending on the nature of any default, the Company would either repay the outstanding principal and accrued interest and receive Sphere’s ENC shares, or call Sphere’s shares in ENC and assume the loa n as borrower. Under either enforcement scenario, the credit enhancem ent gives the Company effective priority over Sphere’s 10% ENC stake, ensuring that this interest cannot be acquired by third parties or competitors in a default situation. During the half year period the Company reached agreement with its largest shareholder, Shanghai Decent, to revise the ENC acquisition schedule. Under the revised arrangement, Nickel Industries acquired a final additional 2% interest in ENC, increasing its shareholding from 44% to 46% and becoming the largest shareholder in the project. Nickel Industries made a final payment of $46 million for the additional 2% interest in ENC. This replaced and fully supersedes the previously expected payments of totalli ng $253 million (being two $126.5 million payments scheduled for 1 July 2026 and 1 October 2026) originally scheduled to take the Company to a 55% interest in ENC. TMI HPAL investment In June 2026 the Company agreed to invest $169 million for a 17.5% interest in TMI HPAL project, with the acquisition payment due on 26 November 2026. TMI is being developed as an expansion to ENC on the same site within the Indonesia Morowali Industrial Park (IMIP), producing MHP for the EV battery supply chain. Nickel Industries’ 17.5% interest sits alongside a 72.5% interest held by a Korean -Japanese consortium (comprising LS MnM, Hanwa and an undisclosed strategic investor), and a 10% interest by a Singapore-based investment company, Sumber International Investment (Sumber). The Company will be the beneficiary of a comprehensive construction guarantee whereby Nickel Industries’ total acquisition cost will not exceed $169 million and the delivery of nameplate capacity will occur by September 2027 (Construction Guarantee) – providing Nickel Industries with cost, timeline and production certainty. A slurry pipeline and a tailings pipeline between the Sampala Project and TMI will be funded under the Construction Guarantee, replicating the integrated configuration already in place between Hengjaya Mine and ENC. TMI is under construction, with commissioning expected to commence in mid-2027. Subsequent to the end of the half year period , the Company has executed an unsecured loan facility agreement for $169 million with one of Tsingshan’s partners, to fund (if required) the Company’s acquisition of a 17.5% interest in TMI. TMI’s annual nameplate production capacity of 38,640 Ni provides attributable production to Nickel Industries of approximately 6,775 Ni tonnes per annum in MHP.
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 10 CNE HPAL investment and Sampala Project monetisation In June 2026 the Company entered a binding Framework Agreement with its local Indonesian partner, led by Mr. Adi Wijoyo ( Local Partner), and Indonesian investor PT Jaya Agung Investasi ( JAYA) for a long -term strategic cooperation in nickel ore mining and HPAL processing. The CNE HPAL project is currently being developed as an expansion to the Company’s ENC HPAL project within the IMIP. CNE has a designed annual nameplate production of 28,357 nickel tonnes in MHP. JAYA has rights to acquire 85.7% of the equity in CNE and pursuant to the Framework Agreement, these rights will be transferred to Nickel Industries and Local Partner, in return for a 30% interest in two of the Sampala Project IUPs, being ANN and ETL (together, the Mine Companies) (the Transaction). JAYA has rights to acquire 85.7% of the equity in CNE and through the Framework Agreement, these rights will be acquired by Nickel Industries and Local Partner, in return for a 30% interest in two of the Sampala Project IUPs, being PT Abadi Nikel Nusantara (ANN) and PT Erabaru Timur Lestari (ETL, together the Mine Companies) (the Transaction). The values for effecting the Transaction have been negotiated and agreed as follows: • the Mine Companies, $1.342 billion (on a pre-money basis); and • CNE, $671 million (on a pre-money basis). As the Transaction is a share-for-share transaction, Nickel Industries will not be required to contribute any cash consideration for the investment in CNE. The post-completion Transaction structure is summarised in the figure below. Nickel Industries equity interests Mine Companies CNE HPAL Pre Transaction 60% - Post Transaction 42% 36%
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 11 Nickel Industries has entered into binding acquisition agreements with the Local Partner to acquire a 60% equity interest in the Mine Companies for a combined $149 million (refer 25 May 2026 ASX release Sampala Resource). These agreements remain in force. As shown in the structure diagram and table above, the Company is effectively monetising an 18% equity interest in ANN and ET L (at an implied acquisition cost of $44.7 million) in return for an effective 36% equity interest in CNE (at an implied value of $241.6 million) – a significant valuation uplift and validation of the economic value of the Sampala Project assets, ANN and ETL. Post the Transaction, Nickel Industries will remain the largest shareholder and operator of the Mine Companies (42%), along with JAYA (30%) and the Local Partner (28%). CNE is under construction, with commissioning expected to commence in mid -2027. The Mine Companies (and therefore Nickel Industries) will not be required to contribute any cash for the construction of CNE, which will remain the responsibility of JAYA (along with CNE’s working capital, which shall be provided via external financing or JAYA shareholder loans) – once again, this provides Nickel Industries with cost, timeline and production certainty. Strategically, Nickel Industries’ Sampala Project has been identified as the exclusive ore supplier to CNE (as well as TMI), aligning the Company as both an equity investor and the upstream supplier to the CNE HPAL project. The world -class scale and grade of the Sampala Resource will ensure TMI and CNE has secured ore supply for decades to come. A slurry pipeline and tailings pipeline between the Sampala Project and CNE will be constructed, replicating the integrated configuration already in place between Hengjaya Mine and ENC. Conditions precedent for the Transaction JAYA is an entity associated with Mr William Shangjaya, a Director of Nickel Industries. JAYA is therefore a related party of the Company and has a material personal interest in the proposed Transaction and therefore an Extraordinary General Meeting (EGM) will be held to seek shareholder approval for the proposed Transaction for the purposes of ASX Listing Rule 10.1. The proposed Transaction also remains conditional on the execution of definitive transaction agreements, customary regulatory approvals and confirmatory due diligence. Further details regarding the proposed Transaction will be contained in an Explanatory Memorandum, which will contain an Independent Expert Report opining on the Transaction. SUBSEQUENT EVENTS In July 2026, the Company announced the maiden production of MHP at the ENC project, followed by the first production of nickel cathode in early August 2026. In August 2026, the Company signed an unsecured loan facility agreement for $169 million with one of Tsingshan’s partners to fund (if required) the Company’s acquisition of a 17.5% interest in TMI. Other than the matters detailed above, there has not arisen in the interval between the end of the half year and the date of this report any other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTORS’ REPORT 12 LEAD AUDITOR’S INDEPENDENCE DECLARATION A copy of the Lead Auditor’s Ind ependence Declaration on page 13 as required under Section 307C of the Corporations Act 2001 is attached to and forms part of the Directors’ Report for the half-year ended 30 June 2026. Signed in accordance with a resolution of the Directors. Norman Seckold Justin Werner Chairman Managing Director Sydney, 26 August 2026
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13 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Nickel Industries Limited I declare that, to the best of my knowledge and belief, in relation to the review of Nickel Industries Limited for the half-year ended 30 June 2026 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and ii. no contraventions of any applicable code of professional conduct in relation to the review. KPM_INI_01 KPMG Adam Twemlow Partner Brisbane 26 August 2026
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NICKEL INDUSTRIES LIMITED and its controlled entities CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2026 14 Condensed consolidated interim statement of profit or loss and other comprehensive income Notes 6 months to 30 June 2026 6 months to 30 June 2025 US$ $ $ Sales revenue 938,382,871 829,703,011 Cost of sales (702,696,014) (657,432,690) Depreciation and amortisation expense 9,12 (71,357,368) (57,433,920) Gross profit 164,329,489 114,836,401 Consultants’ and administrative expenses (7,093,626) (10,929,824) Directors’ fees (1,725,663) (1,333,298) Exploration and evaluation expenditure - (348,415) Share of profit of equity accounted investee 12 20,128,225 8,235,209 Share based payments 15 (854,865) (630,056) Other expenses 4 (10,530,376) (11,120,160) Results from operating activities 164,253,184 98,709,857 Financial income 5 6,630,231 3,077,360 Financial expense 5 (71,236,726) (51,839,235) Net financial expense (64,606,495) (48,761,875) Profit before income tax 99,646,689 49,947,982 Income tax expense (25,301,763) (24,444,252) Profit for the period 74,344,926 25,503,730 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations 1,782 (34,138) Total comprehensive income for the period 74,346,708 25,469,592 Profit attributable to: Owners of the Company 52,476,206 11,265,807 Non-controlling interest 21,868,720 14,237,923 Profit for the period 74,344,926 25,503,730 Total comprehensive income attributable to: Owners of the Company 52,477,632 11,266,077 Non-controlling interest 21,869,076 14,203,515 Total comprehensive income for the period 74,346,708 25,469,592 Earnings per share Basic and diluted profit per share (cents) 7 1.21 0.26 The above condensed consolidated interim statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
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NICKEL INDUSTRIES LIMITED and its controlled entities CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026 15 ed consolidated interim statement of financial position Notes 30 June 2026 31 December 2025 US$ $ $ Current assets Cash and cash equivalents 260,050,595 323,327,295 Cash reserve 8,304,411 33,435,076 Trade and other receivables 6 293,412,629 309,818,888 Inventory 8 266,240,206 224,221,385 Other current assets 79,099,635 25,753,396 Receivable for a 10% interest in ENC Project 12 - 239,000,000 Total current assets 907,107,476 1,155,556,040 Non-current assets Other non-current asset 79,954,762 51,327,766 Trade and other receivables 6 52,217,663 39,142,419 Inventory 8 77,798,813 90,581,818 Property, plant and equipment 9 1,423,336,028 1,484,079,002 Exploration and evaluation assets 103,213,165 77,365,914 Investments in equity accounted investees 12 1,314,763,739 1,248,635,514 Intangible assets 12 68,046,651 70,386,364 Goodwill 10 47,343,509 47,343,509 Total non-current assets 3,166,674,330 3,108,862,306 Total assets 4,073,781,806 4,264,418,346 Current liabilities Trade and other payables 11 188,569,722 241,129,464 Current tax payable 19,967,921 16,453,985 Provision 4,025,980 3,743,580 Borrowings 13 84,520,500 123,849,223 Financial instruments 12 5,000,000 - Payable for a 10% interest in ENC Project 12 - 240,000,000 Total current liabilities 302,084,123 625,176,252 Non-current liabilities Provision – rehabilitation 3,320,064 3,548,868 Deferred income tax liability 64,269,060 64,212,593 Other non-current liability 11,746,642 10,709,697 Borrowings 13 1,163,851,454 1,102,263,793 Total non-current liabilities 1,243,187,220 1,180,734,951 Total liabilities 1,545,271,343 1,805,911,203 Net assets 2,528,510,463 2,458,507,143 Equity Share capital 14 2,059,790,138 2,059,371,236 Reserves 20,189,305 19,751,916 Retained profits 16,415,841 (36,060,365) Total equity attributable to equity holders of the Company 2,096,395,284 2,043,062,787 Non-controlling interest 432,115,179 415,444,356 Total equity 2,528,510,463 2,458,507,143 The above condensed consolidated interim statement of financial position should be read in conjunction with accompanying notes.
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NICKEL INDUSTRIES LIMITED and its controlled entities CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2026 16 Condensed consolidated interim statement of changes in equity Notes Share capital Retained profits Reserves Total Non-controlling interest Total equity US$ $ $ $ $ $ $ Balance at 1 January 2025 2,035,227,454 61,739,540 19,050,346 2,116,017,340 432,212,366 2,548,229,706 Total comprehensive income for the period Profit for the period - 11,265,807 - 11,265,807 14,237,923 25,503,730 Other comprehensive income/(loss) - - 270 270 (34,408) (34,138) Total comprehensive income for the period - 11,265,807 270 11,266,077 14,203,515 25,469,592 Transactions with owners, recorded directly in equity Issue of shares 14 23,724,880 - - 23,724,880 - 23,724,880 Share based payments 15 - - 630,056 630,056 - 630,056 Dividends - (40,738,509) - (40,738,509) - (40,738,509) Distributions to non-controlling interest - - - - (24,837,377) (24,837,377) Balance at 30 June 2025 2,058,952,334 32,266,838 19,680,672 2,110,899,844 421,578,504 2,532,478,348 Balance at 1 January 2026 2,059,371,236 (36,060,365) 19,751,916 2,043,062,787 415,444,356 2,458,507,143 Total comprehensive income for the period Profit for the period - 52,476,206 - 52,476,206 21,868,720 74,344,926 Other comprehensive income - - 1,426 1,426 356 1,782 Total comprehensive income for the period - 52,476,206 1,426 52,477,632 21,869,076 74,346,708 Transactions with owners, recorded directly in equity Share based payments 15 - - 854,865 854,865 - 854,865 Fair value of share rights vested 15 418,902 - (418,902) - - - Distributions to non-controlling interest - - - - (5,198,253) (5,198,253) Balance at 30 June 2026 2,059,790,138 16,415,841 20,189,305 2,096,395,284 432,115,179 2,528,510,463 The above condensed consolidated interim statement of changes in equity is to be read in conjunction with the accompanying notes.
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NICKEL INDUSTRIES LIMITED and its controlled entities CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 JUNE 2026 17 Condensed consolidated interim statement of cash flows US$ Notes 30 June 2026 30 June 2025 $ $ Cash flows from operating activities Cash receipts from customers 990,413,414 846,244,728 Cash payments in the course of operations (899,530,348) (789,914,189) Interest received 6,220,153 1,138,090 Taxes and fees refund/(paid) (18,239,645) 3,099,072 Payments for exploration and evaluation (107,696) (443,485) Net cash from operating activities 78,755,878 60,124,216 Cash flows from investing activities Payments for exploration and evaluation assets (26,042,851) (9,547,011) Payments for property, plant and equipment (1,959,530) (12,007,017) Payments for construction in progress (10,092,095) (1,226,087) Advancement of loan monies - (3,000,000) Payments for deposits (28,500,000) - Payments for investments 12 (46,000,000) - Net cash used in investing activities (112,594,476) (25,780,115) Cash flows from financing activities Payment from Sphere put option fee 5,000,000 - Dividend distributions 1 14 - (17,013,629) Proceeds from borrowings, net of transaction costs 13 445,100,963 - Payments from/(to) cash reserve account 25,130,665 (21,761,358) Payment return from letter of credit 4,351,742 - Repayment of borrowings 13 (422,912,500) (22,050,000) Working capital loan to ENC Project (24,202,445) - Payment of interest charges 13 (51,137,188) (45,192,593) Distributions to non-controlling interest (5,198,253) (24,837,377) Net cash used in financing activities (23,867,016) (130,854,957) Net decrease in cash and cash equivalents (57,705,614) (96,510,856) Effect of exchange rate adjustments on cash held (5,571,086) (2,353,738) Cash and cash equivalents at the beginning of the period 323,327,295 210,953,629 Cash and cash equivalents at the end of the period 260,050,595 112,089,035 The above condensed consolidated interim statement of cash flows should be read in conjunction with the accompanying notes. 1 The issuance of ordinary shares in the comparative period disclosed in Note 14 included non-cash transactions of $23,724,880 relating to the Company’s Dividend Reinvestment Plan.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 18 Notes to the financial statements NOTE 1 - REPORTING ENTITY Nickel Industries Limited (the Company) is a company domiciled in Australia. The condensed consolidated interim financial report for the half year ended 30 June 2026 comprises the Company and its subsidiaries (together, referred to as the Group). The Group is a for-profit entity and is involved in nickel mining and production operations. The consolidated annual financial report of the Group as at and for the period ended 31 December 2025 is available upon request from the Company’s registered office at Level 2, 66 Hunter Street, Sydney, NSW, 2000 or at www.nickelindustries.com. NOTE 2 - BASIS OF PREPARATION Statement of compliance The condensed consolidated interim financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134 'Interim Financial Reporting'. The condensed consolidated interim financial statements do not include full disclosures of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the financial report for the year ended 31 December 2025 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules. The financial report was authorised for issue by the Directors on 26 August 2026. Basis of measurement The financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value. Functional and presentation currency These financial statements are presented in United States dollars, which is the Company’s functional currency. Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ fro m these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in th e last annual financial statements, except for the going concern assumption as outlined on page 19 and the judgment in relation to the value of the Sphere put option fee: As part of Sphere Corp (Sphere) financing of a 10% interest in the ENC project for $240 million, the Company granted the lenders a put option. The fair value of put and call option financial instruments are determined using a Monte Carlo Simulation valuation, with reference to the transaction price paid for the instruments at transaction date. These financial instruments are recognised a t fair value through profit and loss (FVTPL) and are subsequently remeasured at each reporting date.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 19 NOTE 2 - BASIS OF PREPARATION (cont.) In forming views on these significant areas of estimation uncertainty, management have also had regard to the broader macroeconomic environment. Whilst nickel prices strengthened across the half year period , costs have also been impacted by the war in the Middle East, in particular increased costs of sulphur. Management has had regard to these factors when assessing the short -term to medium- term outlook for nickel pricing and costs, and the impacts this may have on financial performance of the Group as a result. Basis of Preparation - Going Concern This interim financial report has been prepared on the going concern basis which contemplates the continuity of normal busine ss activities, the realisation of assets and the settlement of liabilities in the ordinary course of business at amounts stated in the interim financial report. As at 30 June 2026, the Group had cash and cash equivalents of $260,050,595 (31 December 2025: $323,327,295), a net current asset surplus of $605,023,352 (31 December 2025: $530,379,788) and recorded a profit of $74,344,926 (interim period ended 30 June 2025: $25,503,730) for the half year period. The Group has net cash operating inflows for the half year period of $78,755,878 (interim period ended 30 June 2025: $60,124,216). In April 2026 the Company executed new $450 million syndicated loan facilities (the Facilities), comprising a $350 million term loan facility and a $100 million revolving loan facility, both of which are unsecured (refer note 13). The Company used the proceeds from the Facilities to refinance $398 million of existing bank loans, which lowered the Company’s borrowing rate, extended the maturity of its bank debt obligations, and included less onerous financial ratio covenants. Additionally, subsequent to year end, the Company entered into an unsecured loan facility of $169 million with a partner of Tsingshan. The facility has been established to provide funding, if required, for the Company’s acquisition of a 17.5% interest in the p roject as announced in June 2026. During the period ended 30 June 2026, nickel prices strengthened, supporting an improvement in the Group’s operating margins. Management has considered these favourable market conditions in assessing the Group’s short to medium -term outlook and the expected impact on the Group’s future financial performance. Management have prepared detailed cash flow forecasts for the period 1 July 2026 to 30 September 2027, which support the ability of the Group to continue as a going concern. These forecasts incorporate key assumptions regarding the successful commissioning of the ENC project, including the receipt of the required sales licence, commencement of commercial sales, and generation of positiv e operational cash flows consistent with forecasts. As at the date of signing this interim financial report, the Directors have reasonable grounds to believe that the going concern basis of preparation remains appropriate for the financial statements.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 20 NOTE 3 - MATERIAL ACCOUNTING POLICIES The accounting policies applied by the Group in these condensed consolidated interim financial statements are materially the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2025. The policy for recognising and measuring income taxes in the interim period is consistent with that applied in the comparative interim period, except for the changes outlined below: The Group has previously adopted AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rule s which provides a temporary mandatory relief from deferred tax accounting for the impacts of the top -up tax and accounts for it as a current tax when it is incurred. The Company has assessed the implications of the Pillar Two global minimum tax rules under IAS1 2 and recognised an estimated tax expense of $ 1,538,109 and corresponding liability in relation to earnings in the jurisdiction of Hong Kong for the six -month period ended 30 June 202 6 which are subject to the Hong Kong minimum top-up tax (2025: $1,205,733). The top-up tax relates to the Group’s operations in Hong Kong, where the profit is not subject to Hong Kong profits tax and results in an effective tax rate which is below 15 percent. As of 30 June 2026, Hong Kong has enacted legislation to implement Pillar Two rules for income years beginning on or after 1 January 2025. Therefore from 2025, Tsing Creation International Holding Limited is liable for the top-up tax in relation to its operations instead of the Company. 6 months to 30 June 2026 6 months to 30 June 2025 $ $ NOTE 4 - OTHER EXPENSES Audit fees – KPMG audit and review of financial reports 223,912 462,714 Travel 282,933 158,580 Legal fees 1,304,844 751,127 Withholding tax expenses 3,688,657 3,117,439 Other 5,030,030 6,630,300 10,530,376 11,120,160
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 21 6 months to 30 June 2026 6 months to 30 June 2025 NOTE 5 - FINANCIAL INCOME AND FINANCE EXPENSE Financial income 6,630,231 3,077,360 Interest expense* (54,335,444) (48,416,459) Foreign exchange loss (16,901,282) (3,422,776) (64,606,495) (48,761,875) * Includes amortisation of bond issue costs and bank loan facility costs of $3,196,180 which are being expensed under the effective interest rate method. Refer to Note 13 for further details. 30 June 2026 $ 31 December 2025 $ NOTE 6 - TRADE AND OTHER RECEIVABLES Current Sales taxes receivable * 111,141,770 127,333,031 Trade receivables^ 182,270,859 182,485,857 293,412,629 309,818,888 Non-current Sales taxes receivable * 52,217,663 39,142,419 52,217,663 39,142,419 * The four RKEF entities have the following sales tax receivable (VAT) amounts outstanding at 30 June 2026: PT Hengjaya Nickel Industry $ 19.7 million, PT Ranger Nickel Industry $12.1 million, PT Angel Nickel Industry $40.3 million and PT Oracle Nickel Industry $91.1 million. PT Hengjaya Nickel Industry , PT Ranger Nickel Industry and now PT Angel Nickel I ndustry are receiving VAT refunds regularly in the normal course of operations. During the period the PT Angel Nickel Industry received the VAT claim for the 2024 year ($23.9 million). PT Oracle Nickel Industry has not yet commenced receiving VAT refunds. ^ Trade receivables are in the ordinary course of business and at 30 June 2026 are comprised as follows: PT Hengjaya Mineralindo $18.0 million (excludes saprolite ore receivables which are eliminated on consolidation), PT Hengjaya Nickel Industry $18.7 million, PT Ranger Nickel Industry $19.2 million, PT Angel Nickel Industry $51.5 million, PT Oracle Nickel Industry $73.5 million and Tsing Creation $1.3 million.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 22 6 months to 30 June 2026 $ 6 months to 30 June 2025 $ NOTE 7 - PROFIT PER SHARE Basic and diluted profit per share have been calculated using: Net profit for the period attributable to equity holders of the Company 52,476,206 11,265,807 Nº of Shares Nº of Shares Weighted average number of ordinary shares (basic) Issued ordinary shares at the beginning of the period 4,340,935,875 4,289,809,880 Effect of shares issued on 21 March 2025 - 28,524,737 Effect of shares issued on 24 February 2026 701,657 - Weighted average number of shares at the end of the period 4,341,637,532 4,318,334,617 Nº of Securities Nº of Securities Weighted average number of securities (diluted) Issued securities at the beginning of the period 4,350,151,131 4,289,809,880 Effect of shares issued on 21 March 2025 - 28,524,737 Effect of performance and share rights issued on 30 June 2025 - 56,438 Effect of conversion of share rights on 24 February 2026 - - Effect of cancellation of performance rights issued on 31 March 2026 (198,943) - Effect of performance rights issued on 30 June 2026 25,328 - Weighted average number of securities (diluted) at the end of the period 4,349,977,516 4,318,391,055 30 June 2026 31 December 2025 $ $ NOTE 8 - INVENTORY Current Inventory – Hengjaya Mine nickel ore stockpiles 50,332,629 19,163,156 Inventory – nickel pig iron production raw materials 211,066,625 201,308,988 Inventory – nickel pig iron 4,840,952 3,749,241 266,240,206 224,221,385 Non-current Inventory – Hengjaya Mine nickel ore stockpiles* 77,798,813 90,581,818 77,798,813 90,581,818 * The carrying value of limonite ore not forecast to be delivered in the next 12 months has been classified as non-current. During the six-month period ended 30 June 2026, the Company’s 80% subsidiary PT Hengjaya Mineralindo supplied saprolite nickel ore to the Company’s 80% owned subsidiaries PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry under a series of offtake agreements to supply a minimum of 50,000 wmt of saprolite to each entity.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 23 NOTE 8 – INVENTORY (cont.) Nickel pig iron production raw materials includes nickel ore acquired by PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry from PT Hengjaya Mineralindo , operator of the Hengjaya Mine . This continues to be valued at the PT Hengjaya Mineralindo cost of production. Inventories are carried at the lower of cost or net realisable value. 30 June 2026 31 December 2025 NOTE 9 - PROPERTY, PLANT AND EQUIPMENT Furniture and fittings 85,977 76,587 Mine infrastructure assets 30,140,358 31,151,198 Buildings 296,666,339 304,272,637 Mining properties 25,420,742 26,349,933 Office equipment 867,384 940,388 Plant and machinery 1,051,841,521 1,108,780,095 Motor vehicles 331,615 397,785 Construction in progress* 17,982,092 12,110,379 1,423,336,028 1,484,079,002 Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below. 6 months to 30 June 2026 12 months to 31 December 2025 Furniture and fittings Carrying amount at beginning of year 76,587 110,690 Additions 24,503 39,627 Depreciation (15,113) (73,730) Net book value 85,977 76,587 Mine infrastructure assets Carrying amount at beginning of year 31,151,198 29,438,875 Additions - 3,722,777 Depreciation (1,010,840) (2,010,454) Net book value 30,140,358 31,151,198 Buildings and land Carrying amount at beginning of year 304,272,637 319,059,462 Additions 1,614,958 3,426,417 Depreciation (9,221,256) (18,213,242) Net book value 296,666,339 304,272,637
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 24 NOTE 9 - PROPERTY, PLANT AND EQUIPMENT (cont.) 6 months to 30 June 2026 12 months to 31 December 2025 Mining properties Carrying amount at beginning of year 26,349,933 23,554,134 Additions - 6,034,397 Disposal (277,164) (1,685,308) Depreciation (652,027) (1,553,290) Net book value 25,420,742 26,349,933 Office equipment Carrying amount at beginning of year 940,388 946,995 Additions 156,798 462,125 Depreciation (229,802) (468,732) Net book value 867,384 940,388 Plant and machinery Carrying amount at beginning of year 1,108,780,095 1,195,233,255 Additions 959,396 2,112,303 Disposal (101,254) (521,197) Depreciation (57,796,716) (88,044,266) Net book value 1,051,841,521 1,108,780,095 Motor vehicles Carrying amount at beginning of year 397,785 386,600 Additions 25,730 223,346 Depreciation (91,900) (212,161) Net book value 331,615 397,785 Construction in progress Carrying amount at beginning of year 12,110,379 3,922,473 Additions 6,827,108 15,908,663 Disposal - (7,518) Transfers* (955,395) (7,713,239) Net book value 17,982,092 12,110,379 Total property, plant and equipment 1,423,336,028 1,484,079,002 *Balances in construction in progress are transferred into other categories , as addition s, on commissioning of projects, or when available for use in a manner that Management intended. During the period, the Group acquired $2,781,385 of property, plant and equipment and recognised depreciation and amortisation totalling $69,017,655.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 25 30 June 2026 31 December 2025 NOTE 10 - GOODWILL Carrying amount at beginning of year 47,343,509 47,343,509 47,343,509 47,343,509 The goodwill balance amounting to $47,343,509 pertain s to the Angel Nickel and Oracle Nickel RKEF Projects, which are each considered to be individual cash generating units (‘CGUs’). Impairment testing is performed annually over goodwill on 31 December, and an assessment of whether any impairment indicators exist over the Group’s other assets are performed at each reporting date . Each of the Group’s CGUs were assessed for external and internal impairment indicators a t 30 June 202 6 and the Directors determined there were no indicators present which would trigger impairment testing. 30 June 2026 31 December 2025 NOTE 11 - TRADE AND OTHER PAYABLES Current Creditors 139,664,576 220,580,948 Accruals 15,582,204 11,330,656 Other 33,322,942 9,217,860 188,569,722 241,129,464 30 June 2026 31 December 2025 NOTE 12 - EQUITY-ACCOUNTED INVESTEES AND ASSOCIATED INTANGIBLE ASSETS Investment in Equity Accounted Investee HNC – 10% interest Opening balance 220,325,212 199,826,500 Share of profit of associate 19,336,913 20,498,712 Carrying value of investment in HNC 239,662,125 220,325,212 ENC – 46% interest Opening balance 1,028,310,302 1,030,448,417 Acquisition of an additional 2% interest in ENC 46,000,000 - Share of profit/(loss) of associate 791,312 (2,138,115) Carrying value of investment in ENC 1,075,101,614 1,028,310,302 1,314,763,739 1,248,635,514 Intangible Asset HNC Opening balance 70,386,364 75,065,789 Amortisation (2,339,713) (4,679,425) 68,046,651 70,386,364
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 26 NOTE 12 - EQUITY-ACCOUNTED INVESTEES AND ASSOCIATED INTANGIBLE ASSETS (cont.) During the half year period , the Company reached agreement with its largest shareholder Shanghai Decent, to revise the ENC acquisition schedule. Under the revised arrangement, the Company acquired a final additional 2% interest in ENC, increasing its shareholding from 44% to 46% and becoming the largest shareholder in the project. The Company made a final payment of $46 million for the additional 2% interest in ENC. This replaced and fully superseded the previously expected payments of totalling $253 million (being two $126.5 million payments scheduled for 1 July 2026 and 1 October 2026) originally scheduled to take the Company to a 55% interest in ENC. In December 2025, Sphere Corp. (Sphere), invested in the ENC Project as a strategic partner. Sphere acquired a 10% interest in the Project from the Company at a $2.4 billion valuation, which concurrently acquired a 10% interest based on the same $2.4 billi on valuation, leaving the Company’s interest unchanged at 44%. Sphere will offtake its 10% share of nickel as cathode and has entered into an offtake agreement, at market price, for further volumes above its 10% ownership share. At 31 December 2025, the Company had recorded a receivable from Sphere in relation to its 10% interest in ENC, amounting to $239 million. In January 2026 Sphere has settled this amount fully. Concurrently, the Company settled a payable to Shanghai Decent for $240 million. To complete its investment in ENC, in January 2026 Sphere entered into a $210 million senior secured amortising term loan fro m external lenders. To facilitate this financing, the Company agreed to provide a credit enhancement to Sphere’s lenders by gra nting them recourse to the Company in the event Sphere defaults. Depending on the nature of any default, the Company would either repay the outstanding principal and accrued interest and receive Sphere’s ENC shares, or call Sphere’s shares in ENC and assume the loan as borrower. Under either enforcement scenario, the credit enhancement gives the Company effective priority over Sphere’s 10% ENC stake, ensuring that this interest cannot be acquired by third parties or competitors in a default situation. The credit enhancement facility is recognised as a derivative financial instrument and is measured at FVTPL at initial recogn ition. The fair value of the instrument at inception and at period end was determined by reference to the $5m transaction price pai d by Sphere to the Company. 30 June 2026 31 December 2025 $ $ NOTE 13 - BORROWINGS Current Interest on BNI loan facility – October 2028 - 3,110,360 Interest on BNI loan facility – May 2029 - 1,861,613 Interest on Bank Facilities – June 2030 4,833,000 - Interest on Senior Unsecured Notes – September 2030 18,000,000 18,000,000 Bank Facilities – June 2030 61,687,500 - Bank Facility – October 2028 - 57,127,250 Bank Facility – May 2029 - 43,750,000 84,520,500 123,849,223 Non-current Bank Facility – October 2028 - 126,302,868 Bank Facility – May 2029 - 194,542,519 Senior Unsecured Notes – September 2030 782,665,461 781,418,406 Bank Facilities – June 2030 381,185,993 - 1,163,851,454 1,102,263,793
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 27 NOTE 13 - BORROWINGS (cont.) In April 2026, following the execution of the Bank Facilities June 2030, the Company repaid the balance of the Bank Facility October 2028, and Bank Facility 2029. The remaining capitalised transaction costs at refinancing date were expensed to the profit and loss. Bank Facilities June 2030 In April 2026, the Company executed new $450 million syndicated loan facilities (the Bank Facilities June 2030), led by PT Bank Negara Indonesia (Persero) Tbk (BNI), in order to refinance the Company’s $398 million of bank loans existing at the time, the Bank Facility October 2028 and the Bank Facility May 2029, as well as for general working capital purposes. The Bank Facilities June 2030 comprise a $350 million term loan facility (Term Loan) and a $100 million revolving loan facility, both of which are unsecured. The interest rate applicable on the Bank facilities June 2030 is a margin above the Secured Overnight Financing Rate (SOFR) (3.66% at 30 June 2026), which will be (i) 3.50% for the first six months and thereafter (ii) linked to the Company’s leverage level (net debt / EBITDA) as follows: Leverage Margin (per annum) 3.00x < x ≤ 3.50x 4.50% 2.50x < x ≤ 3.00x 3.50% 2.00x < x ≤ 2.50x 2.50% x ≤ 2.00x 2.25% * Maximum leverage covenant of 3.50x under the Facilities A quarterly amortisation schedule commence s six months from the establishment of the Term Loan , with a quarterly principal repayment instalment of 5.875% of the total facility amount, with a final bullet repayment on the final maturity date of 30 June 2030. The revised repayment schedule optimised the maturity of the Company’s bank loans and provided additional cash flow flexibility as the ENC project commissions and ramps up to nameplate capacity. Debt covenants The Facilities maturing June 2030 include covenants that need to be complied with within 12 months of the reporting date. The covenants state that at the interim and full year reporting period, the Group’s Leverage Ratio (Net Debt to Consolidated EBITDA) does not exceed 3.5 times, Debt Service Coverage Ratio (Cashflow to Debt Service) is more than 1.3 times , otherwise the loans will be repayable on demand unless the Group can remedy through an equity cure. Management have prepared covenant calculations and forecasts for the above facilities which indicate compliance with the covenants outlined above across the next 12 months. Senior Unsecured Notes September 2030 In September 2025, as part of a refinancing to extend the Company’s debt maturity profile, the Company issued $800,000,000 senior unsecured notes (Senior Unsecured Notes Sep 2030). At the same time the Company made a tender offer (Concurrent Tender Offer 2025) for its existing Senior Unsecured Notes (maturing October 2028) and purchased the outstanding $400,000,000 of Senior Unsecured Notes October 2028. Key terms of the Senior Unsecured Notes Sep 2030 are as follows: • Issue size of $800,000,000; • Coupon interest rate of 9% per annum; • Interest is payable on a semi-annual basis in arrears; • Final maturity date of 30 September 2030; and • Total transaction costs totalled $19,281,166, including a loan facility fee of $12,000,000.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 28 NOTE 13 - BORROWINGS (cont.) The terms and conditions of the outstanding loans are as follows: Currency Nominal interest rate Year of maturity Carrying value 30 June 2026 $ Face value 30 June 2026 $ Carrying value 31 December 2025 $ Face value 31 December 2025 $ Bank Facility October 2028 US$ - 2028 - - 186,540,478 183,850,000 Bank Facility May 2029 US$ - 2029 - - 240,154,132 239,062,500 Senior Unsecured Notes Sep 2030 US$ 9.00% 2030 800,665,461 800,000,000 799,418,406 800,000,000 Bank Facilities June 2030 US$ 7.16%* 2030 447,706,493 450,000,000 - - Total interest-bearing liabilities 1,248,371,954 1,250,000,000 1,226,113,016 1,222,912,500 *Interest rate charged on Bank Facilities June 2030 as at 30 June 2026. 30 June 2026 31 December 2025 NOTE 14 - ISSUED CAPITAL No. No. Issued and paid-up capital Fully paid ordinary shares 4,341,935,875 4,340,935,875 Number of shares 2026 $ 2026 Number of shares 2025 $ 2025 Ordinary shares Fully paid ordinary shares carry one vote per share and carry the right to dividends. Balance at the beginning of the period 4,340,935,875 2,059,371,236 4,289,809,880 2,035,227,454 Issue of shares 1,000,000 418,902 51,125,995 24,143,782 Balance at the end of the period 4,341,935,875 2,059,790,138 4,340,935,875 2,059,371,236 During the half year period the Company issued 1,000,000 fully paid ordinary shares to Director and Chief Financial Officer Chris Shepherd following the vesting of 1,000,000 Share Rights. An amount of $418,902 was taken up in issued capital. See Note 15 Share Based Payments for further details. Options There were no options granted, exercised or lapsed unexercised during the half year ended 30 June 2026 or the year ended 31 December 2025. Rights The Company issued Performance Rights during the half year ended 30 June 2026. These are detailed in Note 15. Dividends The Company did not declare or pay a dividend during the half year period. Ordinary shares The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid. The holders of ordinary shares are entitled to receive dividends as declared from time to time.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 29 NOTE 15 – SHARE BASED PAYMENTS Performance Rights Commencing in 2025 the Company introduced both ‘at-risk’ short-term incentive (STI) and long-term incentive (LTI) components of employee and contractor remuneration packages. 2026 LTI Component Under the LTI component, on 30 June 202 6 the Company issued 4,584,433 performance rights for no consideration. This included 1,336,632 performance rights issued to the Company’s executive directors , as approved by shareholders at the Company’s Annual General Meeting (AGM) held on 26 May 2026. The fair value of rights granted is measured at grant date and recognised as an expense over the period during which the dire ctor or employee becomes unconditionally entitled to the rights. The fair value of the rights granted is measured using a valuation methodology, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of rights that vest. The vesting conditions for the performance rights comprise the following performance metrics (Performance Conditions), tested over the 3-year vesting period commencing on 1 January 2026: 1. a relative total shareholder return ( TSR) metric compared to a defined peer group of ASX 200 listed entities, representing 30% of the total weighting; 2. an earnings per share (EPS) metric, representing 30% of the total weighting; and 3. strategic objectives metrics, representing 40% of the total weighting. The Performance Conditions will be tested over a three -year period from 1 January 202 6 until 31 December 202 8. Subject to satisfaction of the Performance Conditions, the Performance Rights will vest following release of the audited financial state ments for 2028. The fair value of the performance rights granted that related to market conditions was measured using a Monte Carlo Simulation pricing model. The fair value of the portion of the award that is conditional upon specific non -market conditions and the complet ion of a service period are first valued by the share price at grant date, less the present value of estimated dividends paid prior to the time of exercise. This ‘unconditional fair value’ is then discounted by the probability of not achieving the non-market performance conditions The fair value of the 3,247,801 rights granted to Group employees and consultants was calculated as $0.78 per right. The Monte Carlo Simulation pricing model inputs were the Company’s share price of $0. 89 at the grant date (determined to be 25 June 2026 when the Offers had been accepted), a volatility factor of 40.86% (based on historical share price performance), a risk-free interest rate of 4.34% and a dividend yield of 1.79%. The fair value of the 1,336,632 rights granted to the Company’s executive directors was calculated as $0.92 per right. The Monte Carlo Simulation pricing model inputs were the Company’s share price of $ 1.03 at the grant date ( determined to be 26 May 2026 when shareholder approval to grant the rights was received at the AGM), a volatility factor of 40.27% (based on historical share price performance), a risk-free interest rate of 4.54% and a dividend yield of 1.50%. The total fair value of the rights granted was $ 1,887,712. Taking into account the progress against the vesting performance criteria detailed above, a share-based payment expense of $299,891 was recorded during the period ended 30 June 2026.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 30 NOTE 15 – SHARE BASED PAYMENTS (cont.) 2025 LTI Component Under the LTI component , on 30 June 2025 the Company issued 7,215,256 performance rights for no consideration. This included 2,040,815 performance rights issued to the Company’s executive directors, as approved by shareholders at the Company’s AGM held on 22 May 2025. The balance was issued to management, employees and consultants of the Group. The assessed total value of the rights granted was $1,134,273. Taking into account the progress against the vesting performance criteria detailed above, a share-based payment expense of $334,153 was recorded during the period ended 30 June 2026. The following performance rights were on issue at 30 June 2026. Number of Rights Issued to Grant Date Issue Date Vesting Date Value per right 3,247,801 Employee/Contractors 25 June 2026 30 June 2026 February 2029 $0.78 1,336,632 Executive Directors 26 May 2026 30 June 2026 February 2029 $0.92 4,783,043 Employee/Contractors 25 June 2025 30 June 2025 February 2028 $0.55 2,040,815 Executive Directors 22 May 2025 30 June 2025 February 2028 $0.50 The weighted average exercise price of these performance rights are nil. The weighted average remaining contractual life of performance rights outstanding at the end of the period was 2.07 years. Share Rights On 30 June 2025 the Company granted and issued 3 million share rights for no consideration to Director and Chief Financial Officer Chris Shepherd. The issuance was approved by shareholders at the Company’s AGM in May 2025. Each Share Right provides a right to acquire one Share at nil cost. The Share Rights vest in three equal tranches: 1. First Tranche: 1 million Share Rights vested on the date that the Share Rights were granted to Mr Shepherd; 2. Second Tranche: 1 million Shares Rights vest ed on the business day immediately following the release of the Company's FY25 annual financial results, and 3. Third Tranche: 1 million Share Rights will vest on the business day immediately following the release of the Company's FY26 annual financial results, provided that Mr Shepherd is an employee of, or service provider to, the Company on that date. The fair value of the share rights granted was measured using a Black -Scholes formula, taking into account the terms and conditions upon which the share rights were granted. The Black -Scholes formula model inputs were the Company’s share price of $0.66 at the grant date (determined to be 22 May 2025 when shareholder approval to grant the rights was received at the AGM), a volatility factor of 45% (based on historical share price performance), a risk -free interest rate range of between 3.00% to 3.27% and a dividend yield of between 0.0% to 1.8% The total fair value of the share rights granted was $1,235,452. A share-based payment expense of $220,821 was taken up during the period ended 30 June 2026. The fair value of rights granted is measured at grant date and recognised as an expense over the period during which the participant becomes unconditionally entitled to the rights. The fair value of the rights granted is measured using a valuation methodolog y, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of rights that vest.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 31 NOTE 15 – SHARE BASED PAYMENTS (cont.) The following share rights were on issue at 30 June 2026. Number of Rights Issued to Grant Date Issue Date Vesting Date Value per right 1,000,000 Chris Shepherd 22 May 2025 30 June 2025 28 February 2027 $0.64 The weighted average exercise price of these share rights are nil. The weighted average remaining contractual life of share rights outstanding at the end of the period was 0.67 years. NOTE 16 - RELATED PARTIES A number of key management persons, or their related parties, hold positions in other entities that result in them having control or joint control over the financial or operating policies of those entities. A number of these entities transacted with the Group during the period. The Board reviews remuneration arrangements annually based on services provided. Apart from the details disclosed in this note and Note 15, no Director has entered into a contract with the Company during the period and there were no contracts involving Directors’ interests subsisting at 30 June 2026. The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or joint control were as follows: Transaction with Director of related entity Director Norman Seckold holds an intere st in an entity, The Trustee fo r Mining Service Trust (MIS ), which provided full administrative services including administrative, accounting and company secretarial staff, office premises, services and supplies to the Group, for a fee of A$50,000 per month. Fees charged by MIS during the period amounted to A$300,000 (2025: A$300,000). At 30 June 2026, A$50,000 (2025: A$50,000) remained outstanding. Director William Shangjaya holds an interest in an Indonesian entity PT Jaya Agung Investasi ( JAYA), which has rights to acquire 85.7% of the equity in the PT Chengsheng New Energy (CNE) HPAL project, which is currently being developed within the Indonesia Morowali Industrial Park (IMIP). The Company entered into a binding Framework Agreement to acquire an indirect 36% interest in the CNE HPAL project, in return for a 18% interest in two of the Sampala Project IUPs. Transactions with Director of subsidiary company Adi Wijoyo, the Company’s Indonesian operating partner at the Hengjaya Mine is a director of the company operating the mine, PT Hengjaya Mineralindo, in which the Company holds an 80% interest. He is also a vendor of the Sampala Project. The Company has advanced loan amounts for the development of the Sampala Project. Additionally, in May 2026 the Company made a $28,500,000 payment t o PT Sina r Inti Pembangunan, an entity in which Adi Wijoyo ha s a beneficia l intere st, a s pa rt consideration fo r the acquisition of Sampala Project. Adi Wijoyo is also a party to the transaction announced by the Company on 24 June 2026 in which the Company, as noted above, entered into a binding Framework Agreement to acquire an indirect 36% interest in the CNE HPAL project, in return for a 18 % interest in two of the Sampala Project IUPs.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 32 NOTE 16 - RELATED PARTIES (cont.) Transaction with equity accounted associate As part of the acquisition agreement for the HNC HPAL project on 15 August 2023, the Company acquired a 100% interest in Tsing Creation. During the period ended 30 June 202 6, HNC sold mixed hydroxide precipitate ( MHP) to Tsing Creation totalling $66,788,168 (2025: $38,337,840). At 30 June 202 6, there were trade payables of $ nil (2025: $4,135.39) outstanding from Tsing Creation to HNC. At 30 June 2026, Tsing Creation had a shareholder loan receivable from HNC of $ 12,652,084. During the period ended 30 June 2026, Tsing Creation received interest from this shareholder loan totalling $3,565,337. In January 2025, Hengjaya Mine entered into a land lease agreement with PT Fajar Metal Industry (FMI), an associate in the ENC project, for the lease of approximately 74.11 hectares of land located in Indonesia. The lease has a term of 15 years ending 17 January 2040 with an option period to further five years to 17 January 2045. During the six months to 30 June 202 6, the Group recognised rental income of $463,923. In May 2026 the Company advanced a working capital loan of $24,246,402 to FMI, for working capital purposes for the ENC project. The amount represented the Company’s 46% share of working capital requirements during the half year period. Interest was charged at an interest rate of TERM SOFR six months plus 80 basis points. The term of the loan is one year. During the period ended 30 June 2026, the Hengjaya Mine sold limonite ore to FMI totalling $1,272,206 (2025: $nil). At 30 June 2026, there were trade payables of $1,272,206 (2025: $nil) outstanding from FMI to Hengjaya Mine. Transactions with other related entities During the six months to 30 June 2026, the Group sold NPI totalling $804,072,505 to Shanghai Decent-related entities. $183,662,193 of raw materials and services and fixed assets were purchased from Shanghai Decent -related entities. At 30 June 202 6 trade receivables of $157,115,168 from Shanghai Decent-related entities remained outstanding and was included in the receivables balance, and trade payables of $35,260,203, payable to Shanghai Decent -related entities remained outstanding and was included in the creditor’s balance. During the six months to 30 June 202 6 dividend distributions, interest and shareholder loans repayments from the Company’s 80% owned subsidiaries Hengjaya Holdings Private Limited, Ranger Investment Private Limited, Angel Capital Private Limited and Oracle Development Private Limited to Shanghai Decent’s associates Decent Investment International Private Limited and Decent Resource Limited, totalled $5,198,253. Shanghai Decent and its associates hold 20% equity interests in the Hengjaya Nickel, Ranger Nickel, Angel Nickel and Oracle Nickel projects, which reflects the non-controlling interest in the Group amounting to $382,949,567 as at 30 June 2026. Shanghai Decent and its associates are the Company’s collaboration partner at each of the Hengjaya Nickel, Ranger Nickel, Ang el Nickel and Oracle Nickel projects. Shanghai Decent and its associates also have responsibility for the design and construction of the ENC project. Under the terms of the acquisition agreement for the ENC project the Company committed to acquiring a 46% interest in the ENC project for a total acquisition cost of $1,058.1 million, plus the $25 million option fee paid. During the period the Company acquired an additional 2% interest for $46.0 million and at 30 June 2026 the Company had completed the acquisition of a 46% interest for $1,083.1 million. As detailed in Note 12, in January 2026 the Company settled a payable to Shanghai Decent for $240 million for a 10% interest in the ENC project, with Sphere acquiring a 10% interest in the ENC project at the same time and also for $240 million.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 33 NOTE 16 - RELATED PARTIES (cont.) In June 2026, the Company agreed to invest $169 million for a 17.5% interest in the TMI HPAL project, with the acquisition payment due in November 2026. As a result of the above arrangements, the Group is economically dependent on Shanghai Decent and its associates. During the six months to 30 June 2026, $20,835,646 of contractor services were purchased from an entity related to PT Danusa Tambang Nusantara. At 30 June 2026 trade payables of $2,839,19 1 payable to the PT Danusa Tambang Nusantara entity remained outstanding and was included in the creditor’s balance. This was the first period of transactions with this entity. Apart from the details disclosed in this note and in Note 15, no Director or other related party has entered into a material contract with the Group during the year and there were no material contracts involving Director's interests subsisting at year end. NOTE 17 - SEGMENT INFORMATION Segment information is presented on a basis that is consistent with the Group’s internal reporting structure, in which segment performance is reported to the Managing Director, who is the Chief Operating Decision Maker ( CODM). For the half year ended 30 June 2026, the Group had three segments, being nickel ore mining in Indonesia, the RKEF projects in Indonesia and Singapore and the HPAL projects in Indonesia. The Group has two separate HPAL factories within the HPAL Projects segment that are accounted for as equity method associates. They are considered as an aggregate portfolio with Group subsidiary, Tsing Creation International Holdi ng Limited which acts as a trading entity for the HPAL factory’s products. The Group uses Adjusted EBITDA to make business decisions, as it represents the most useful reflection of the Group’s underly ing financial performance. Adjusted EBITDA is defined as profit/(loss) before tax for the period plus the following adjustments: depreciation and amortisation costs, impairment, foreign exchange gains/(losses), Net Finance Cost2, withholding tax expense and the proportionate share of these adjustments in equity accounted associates ( EAA). This non -IFRS financial measure, which is used internally by management to assess the performance of the Group’s segments and make decisions on allocation of resources. The objective of measuring and reporting Adjusted EBITDA is to provide a more meanin gful and consistent representation of financial performance by removing items that distort performance and presents the Group’s financial interest in material EAA on a proportional consolidation basis. Since the comparative period, the definition of Adjusted EBITDA was amended to include the segment’s proportionate share of the above adjustments in equity‑accounted associates within each segment. This change better reflects the Group’s transition toward HPAL processing, and the segment becoming a significant contributor to overall earnings. The change in measurement basis does not affect the Group’s consolidated profit or loss. Additionally, segments begun reporting cash capital expenditure related to payments for exploration and evaluation, construction in progress, and property, plant and equipment to the CODM during the period. This is a non‑IFRS financial measure used internally by management to monitor the allocation of resources. Comparative segment information for the period ended 30 June 2025 has been restated to reflect the amended definition of Adjusted EBITDA, and the inclusion of cash capital expenditure for consistency. 2 Net Finance Cost includes interest income, interest expense and financing expenses
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 34 NOTE 17 - SEGMENT INFORMATION (cont.) Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocat ed on a reasonable basis. Unallocated items comprise interest bearing loans, borrowings and expenses, and corporate assets and expe nses. Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period in that geographic region. Operating segments For the period ended 30 June 2026, the Group had three segments, being nickel ore mining in Indonesia, the RKEF projects in Indonesia and Singapore and the HPAL projects in Hong Kong, Indonesia and Singapore. Nickel ore mining RKEF Projects(1) HPAL Projects Unallocated Total 30 June 2026 $ $ $ $ $ Segment Revenue 170,880,499 804,518,795 149,899,248 - 1,125,298,542 Intercompany revenues (2) (111,363,042) - - - (111,363,042) Revenue of EAA (3) - - (75,552,629) - (75,552,629) External revenues (3) 59,517,457 804,518,795 74,346,619 - 938,382,871 Share of gain of EAA - - 20,128,225 - 20,128,225 Adjusted EBITDA 73,358,561 146,713,331 35,165,523 (7,589,534) 247,647,881 Losses on FX (16,901,282) Gains on FX on EAA 1,089,874 Withholding tax expense (3,688,657) Depreciation and amortisation (4) (71,357,368) Depreciation and amortisation on EAA (8,639,939) Net Finance Cost (47,705,216) Net Finance Cost on EAA (472,069) Tax in equity accounted units (326,535) Profit before income tax 99,646,689 Cash capital expenditure (31,167,826) (6) (6,926,650) - - (38,094,476) Reportable segment assets (5) 440,723,874 2,129,112,582 1,400,499,873 103,445,477 4,073,781,806 Reportable segment liabilities (72,829,044) (199,821,922) (16,067,814) (1,256,552,563) (1,545,271,343) (1) The Group has four separate CGUs (RKEF plants) in the RKEF Projects segment. They are considered as an aggregate portfolio and therefore are included within the one segment here. (2) Sales of saprolite nickel ore are internal to the Group and so are eliminated on consolidation, whilst limonite ore sales are to parties external to the Group. (3) Sales of HPAL products from equity accounted associates are internal to the HPAL segment and are eliminated within the segment. (4) Includes $14,895,619 of amortisation on the fair value uplift of property, plant and equipment resulting from the acquisition of the Angel Nickel, Hengjaya Nickel, Oracle Nickel, and Ranger Nickel RKEF Projects. (5) Includes $1,314,763,739 of investment in EAA sitting within HPAL Projects. (6) $25,626,767 of this expenditure is related to the development of the Sampala Project and $5,541,059 development expenditure at the Hengjaya Mine.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 35 NOTE 17 - SEGMENT INFORMATION (cont.) Nickel ore mining RKEF Projects(1) HPAL Projects Unallocated Total 30 June 2025 $ $ $ $ $ Segment Revenue 130,157,345 733,750,142 100,691,400 - 964,598,887 Intercompany revenues (2) (56,368,201) - (24,946,701) - (81,314,902) Revenue of EAA (3) - - (53,580,974) - (53,580,974) External revenues (3) 73,789,144 733,750,142 22,163,725 - 829,703,011 Share of gain of EAA - - 8,235,209 - 8,235,209 Adjusted EBITDA 70,286,755 78,308,004 26,867,292 (5,601,960) 169,860,091 Losses on FX (3,422,776) Gains on FX on EAA 579,447 Withholding tax expense (3,117,439) Depreciation and amortisation (4) (57,433,923) Depreciation and amortisation on EAA (8,723,203) Net Finance Cost (45,339,099) Net Finance Cost on EAA (2,231,475) Tax in equity accounted units (223,641) Profit before income tax 49,947,982 Cash capital expenditure (11,421,806) (11,358,309) - - (22,780,115) Reportable segment assets (5) 333,836,892 2,118,817,132 1,313,292,329 71,124,980 3,837,071,333 Reportable segment liabilities (68,152,898) (192,628,575) (1,209,869) (1,042,601,643) (1,304,592,985) (1) The Group has four separate CGUs (RKEF plants) in the RKEF Projects segment. They are considered as an aggregate portfolio an d therefore are included within the one segment here. (2) Sales of saprolite nickel ore are internal to the Group and so are eliminated on consolidation, whilst limonite ore sales are to parties external to the Group. (3) Sales of HPAL products from equity accounted associates are internal to the HPAL segment and are eliminated within the segment. (4) Includes $14,895,619 of amortisation on the fair value uplift of property, plant and equipment resulting from the acquisition of the Angel Nickel, Hengjaya Nickel, Oracle Nickel, and Ranger Nickel RKEF Projects. (5) Includes $1,238,510,126 of investment in EAA sitting within HPAL Projects.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 36 NOTE 17 - SEGMENT INFORMATION (cont.) 30 June 30 June 2026 2025 Reconciliations of reportable segment revenues and profit or loss $ $ Profit or loss Total profit for reportable segments 161,229,364 105,313,990 Net other corporate expenses (61,582,675) (55,366,008) Consolidated profit before tax 99,646,689 49,947,982 Reconciliations of reportable assets and liabilities Assets Total assets for reportable segments 3,970,336,329 3,765,946,353 Unallocated corporate assets 103,445,477 71,124,980 Consolidated total assets 4,073,781,806 3,837,071,333 Liabilities Total liabilities for reportable segments (288,718,780) (261,991,342) Unallocated corporate liabilities (1,256,552,563) (1,042,601,643) Consolidated total liabilities (1,545,271,343) (1,304,592,985) Geography of reportable segment assets Indonesia Singapore Total $ $ $ 30 June 2026 Reportable segment assets 3,969,491,029 845,300 3,970,336,329 30 June 2025 Reportable segment assets 3,761,321,793 4,624,560 3,765,946,353 Revenue All sales during the half year were to customers located in either China, Hong Kong, Indonesia, Singapore or Sweden. For the half year ended 30 June 202 6 the value of total NPI sales to customers based in China was $204.4 million and to customers based in Indonesia was $600.1 million. Sales of MHP exported to customers based in China were $16.6 million, to a customer based in Hong Kong were $32.9 million, to a customer based in Singapore were $1.3 million, and to a customer based in Sweden were $23.6 million. Limonite ore revenue totalling $59.5 million was derived from sales to customers located in Indonesia.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 37 NOTE 17 - SEGMENT INFORMATION (cont.) Major customers All sales of nickel pig iron during the half year ended 30 June 2026 were either exported sales to Shanghai Decent in China ($204.4 million), or sales within Indonesia to PT Indonesia Guang Ching Nickel and Stainless Steel Industry ($64.0 million), PT Indonesia Stainless Steel ($469.4 million) or PT Qing Feng Ferrochrome ($50.5 million) and PT Sulawesi Mining Investment ($16.2 million), stainless steel producers operating within the IMIP. Major customers of exported sales of MHP were to IXM (Shanghai) Corporate Management Company Limited ($16.6 million), Minmetals North-Europe Aktiebolag ($23.6 million) and Transamine Far East Limited ($32.9 million). All sales of saprolite nickel ore during the half year ended 3 0 June 202 6, were to the Company’s subsidiaries PT Hengjaya Nickel Industry, PT Oracle Nickel Industry and PT Ranger Nickel Industry, under a series of offtake agreements to supply between 50,000 to 100,000 wmt to each entity. During the half year period, sales of limonite ore were delivered to PT Ana Sumber Trading ($4.5 million), PT Fajar Metal Industry ($1.3 million), PT Longsen Metal Trading ($46.0 million), PT Martin Mitra Nusantara ($4.3 million), PT Sai Niaga Internasional ($0.9 million) and PT Sino Indo Nickel ($2.6 million). NOTE 18 – COMMITMENTS AND CONTINGENCIES There are no contingent liabilities existing at 30 June 2026 (30 June 2025: $nil). Siduarsi Project Under the terms of the Definitive Agreement to increase to an 82.5% interest in the Siduarsi project requires the completion of a feasibility study that is accepted by the Indonesian mining department, to allow the Contract of Work ( CoW) to move into the next phase of its life cycle, which is “production/operation”. The feasibility study has been submitted for approval. To acquire t he remaining 17.5% interest requires a third party valuation of the economic value of the Siduarsi resource to Valmin Code 2015 standard (the Valuation); the vendors may elect to take this consideration as 50% cash and 50% shares based on the 30-day VWAP of Nickel Industries shares on the ASX; and existing aggregate shareholder loans of no more than $9 million to be paid out as 50% cash and 50% Nickel Industries shares (calculated on the 30-day VWAP on the ASX prior to the announcement of the Valuation). Sampala Project Applying the agreed acquisition formula for the Sampala project (60% of the JORC Resource multiplied by $2.50 per dry metric tonne (dmt) above 1.7% Ni) to the updated Sampala Project Resource, the final acquisition payments are: • ANN: US$144 million for a 60% interest, payable in April 2027; • ETL: US$5 million for a 60% interest, payable in the coming months; and • GF: US$7 million for a 60% interest, which has been paid. TMI HPAL Project In June 2026 the Company agreed to invest $169 million for a 17.5% interest in PT Teluk Metal Industry HPAL project ( TMI). The acquisition payment is due on 26 November 2026. Subsequent to the end of the half year period , with the coordination and support from Tsingshan, the Company has signed an unsecured loan facility agreement for $169 million with one of Tsingshan’s partners to fund if required the Company’s acquisition of a 17.5% interest in TMI.
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NICKEL INDUSTRIES LIMITED and its controlled entities NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2026 38 NOTE 19 – SUBSEQUENT EVENTS In late Ju ly 2026, the Company announced the maiden production of MHP at the ENC project , followed by the first production of nickel cathode in early August 2026. In August 2026, the Company signed an unsecured loan facility agreement for $169 million with one of Tsingshan’s partners to fund (if required) the Company’s acquisition of a 17.5% interest in TMI. Other than the matter detailed above, there has not arisen in the interval between the end of the half year and the date of this report any other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Com pany, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.
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NICKEL INDUSTRIES LIMITED and its controlled entities DIRECTOR’S DECLARATION 39 In accordance with a resolution of the Directors of Nickel Industries Limited, we state that in the opinion of the Directors: (a) the financial statements and notes set out on pages 14 to 38 are in accordance with the Corporations Act 2001 including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half- year ended on that date; and (ii) complying with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Regulations 2001; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed at Sydney this 26th day of August 2026 in accordance with a resolution of the Board of Directors: Norman Seckold Justin Werner Chairman Managing Director
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KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Review Report To the shareholders of Nickel Industries Limited Report on the Interim Financial Report Conclusion We have reviewed the accompanying Interim Financial Report of Nickel Industries Limited. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the Interim Financial Report of Nickel Industries Limited does not c omply with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half-year ended on that date; and • complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. The Interim Financial Report comprises: • Condensed c onsolidated interim statement of financial position as at 30 June 2026 • Condensed consolidated interim statement of profit or loss and other comprehensive income, Condensed consolidated statement of changes in equity and Condensed c onsolidated interim statement of cash flows for the half -year ended on that date • Notes 1 to 19 including selected explanatory notes • The Directors’ Declaration. The Group comprises Nickel Industries Limited (the Company) and the entities it controlled at the half year’s end or from time to time during the half-year. Basis for Conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Interim Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to audits of annua l financial report s of public interest entities in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. 40
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41 Responsibilities of the Directors for the Interim Financial Report The Directors of the Company are responsible for: • the preparation of the Interim Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • such internal control as the Directors determine is necessary to enable the preparation of the Interim Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities for the Review of the Interim Financial Report Our responsibility is to express a conclusion on the Interim Financial Report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the Interim Financial Report does not comply with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 30 June 2026 and its performance for the half- year ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of an Interim Financial Report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. KPMG Adam Twemlow Partner Brisbane 26 August 2026 KPM_INI_01
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NICKEL INDUSTRIES LIMITED and its controlled entities CORPORATE DIRECTORY 42 Directors: Norman Seckold Justin Werner Chris Shepherd James Crombie Emma Hall William Shangjaya Muliady Sutio Haijun Wang Yuanyuan Xu Company Secretary: Richard Edwards Principal Place of Business and Registered Office: Level 2, 66 Hunter Street SYDNEY NSW 2000 Phone: 61-2 9300 3311 Fax: 61-2 9221 6333 Email: info@nickelindustries.com Auditors: KPMG Level 11, Heritage Lanes 80 Ann Street BRISBANE QLD 4000 Share Registrar: Computershare Investor Services Pty Limited Level 4, 44 Martin Place SYDNEY NSW 2000 Phone : 1300 787 272 Overseas Callers : 61-3 9415 4000 Fax : 61-3 9473 2500